What Is Bitcoin Waiting For To Rally?

Cryptocurrency analyst known on social media as InvestAnswer examines Bitcoin’s ‘Realized Prize-RP’* metric, which records the value of all BTCs at the price at which they were purchased, dividing them by the number of coins in circulation.

The realized price, calculated according to a metric developed by Coin Metrics, is different from the current price of the cryptocurrency. Realized price is calculated based on actively traded tokens and does not include untraded or lost cryptocurrencies held in wallets. Each token is included in the calculation based on the last time it was traded, thus calculating the total value of the network. This measurement is obtained by dividing the realized cap (realized market value) by the current circulating supply.

In a new market assessment published on Youtube, the analyst points out that historically, Bitcoin has not been below the RP – that is, the realized price – for long.

“We’re starting the countdown to the next halving and we’ve dropped below the actual price here… it’s now 170 days and the actual price is below RP at around $21,000. This suggests that a rise in real price is likely.” Because it has never been here that long… Most of us know so… This is the rainbow chart of the actual price. And we see that the price of Bitcoin is above RP most of the time… It has stayed above that by about 97%, most of the time 98% of the time. under it. And what does that mean?”

According to the analyst, Bitcoin has been below RP for 110 days in 2011, 240 days in 2015, 115 days in 2018, 8 days in 2020 and 170 days so far in 2022. This indicates that a sudden rise in Bitcoin is approaching. Also, the increasing weakening in the US dollar index (DXY) indicates that Bitcoin is ready for a rally. Indeed, as an indicator of the strength of the US dollar, DXY is traditionally thought to be inversely proportional to risky assets like Bitcoin and crypto.

“This is a pretty cool sign because, as we know, if DXY goes up, Bitcoin goes down. Or vice versa. When DXY goes up, Bitcoin goes up. So it’s inversely proportional. If history repeats – and we’ve said that a lot lately – this chart points to a possible breakout. But you can also argue that it has already dropped below 109 from 115. But here we are again. If that happens, it will be very good for risky assets like cryptos as well.”

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